Argentina's Dairy Industry Overview
In 2023, Argentina continues to assert its influence in the global dairy industry. The country boasts approximately 1.6 million dairy cattle, producing an impressive annual milk output of around 10.5 billion liters, showcasing its robust dairy production capabilities.
Production and Processing
Argentina's dairy processing infrastructure is well-developed, handling about 9 billion liters of milk annually. This capacity underscores the efficiency and advancement of its processing facilities, which are crucial to supporting its dairy sector.
Cheese and Milk Powder Production
The nation is renowned for its cheese production, with an annual output of approximately 500,000 metric tons. Additionally, Argentina produces around 150,000 metric tons of milk powder and whey, serving both domestic and international markets.
Key Enterprises and Dairy Farms
Major players in the Argentine dairy sector include La Serenísima (Mastellone Hermanos S.A.), Saputo Inc., and Williner. Prominent dairy farms like Tambos La Unión and Estancia La Nueva significantly contribute to the country's milk production.
Exports and Imports
Argentina exports approximately 3.5 billion liters of dairy products annually, including liquid milk, cheese, and milk powder. The country's substantial domestic production capacity ensures self-sufficiency, reducing the need for imports and allowing a focus on expanding export markets.
Significant Market Events
The Argentine dairy industry is navigating various changes and challenges. Notably, Saputo Inc.'s Board of Directors changes may lead to new strategic directions. Despite a projected 7% decline in milk output for 2024, exports are expected to increase by 50%. The completion of the EU-Mercosur trade deal is anticipated to enhance trade relations, while imports from Germany remain suspended due to a Foot-and-Mouth disease alert.
Outlook
Despite challenges such as rising production costs and climate-related disruptions, Argentina's dairy sector is poised for growth. Innovations like robotic dairy farming in Tacural, Santa Fe, indicate promising advancements. Reports from March 2025 highlight a nearly 16% increase in milk production year-on-year, with a projected annual growth rate of 6%, suggesting a strong recovery.
Dairy Farms and Production Trends
The decline of dairy farms continues, with 90 closures in the first five months of 2025, emphasizing a trend towards concentration in fewer, larger establishments. As of 2025, there are only 9,039 dairy farms remaining, a steep decline from 30,000 in 1988. In Argentina, a small number of large farms produce nearly 30% of the country's milk as medium and small farms close.
International Engagement and Future Prospects
Argentina's involvement in the International Dairy Federation and efforts to reposition on the global dairy map are noteworthy. Production is recovering thanks to healthy margins, although growth may slow by the end of the year. A strong peso is undermining the country's export competitiveness. Crucial decisions in July could shape the future of Argentina’s SanCor and Vicentin amid substantial debts and judicial proceedings.
Challenges and Innovations
A leading dairy company in Santa Fe, Argentina, is embroiled in a severe financial crisis, grappling with a debt exceeding 5.420 billion pesos, ultimately halting milk processing and jeopardizing approximately 700 jobs. The crucial role of cooperatives in the Argentine dairy supply chain is underscored by CAPROLECOBA, which emphasizes the importance of removing export duties to enhance income and encourage investment in rural regions.
Organic and Artisan Trends
In the heart of General Rodríguez, Argentina, a unique organic dairy stands as one of the 16 establishments supplying organic milk to Nestlé in the country. Argentina, along with other South American countries, is consolidating its position as an important source of milk and dairy derivatives, contributing to the region's potential in the global market.
Cultural and Consumer Trends
The city of Tandil in Buenos Aires province has once again celebrated a significant milestone in the Argentine gastronomic landscape. Its Banquete Típico cheese was chosen, for the second consecutive year, as the best in the country in the semi-hard cheese category during the prestigious Caminos y Sabores fair. A new flavor emerges victorious among the preferred choices in Argentina's ice cream scene, dethroning a beloved classic. The new champion is chocolate with almonds, highlighting an evolution in the tastes of Argentine consumers.
Regional Support
Tucumán, Argentina, extends tax benefits for its dairy sector, aiming to strengthen local production with exemptions effective until 2035. The province of Tucumán is reinforcing its support for the dairy industry with key tax exemptions aimed at safeguarding the milk basin and ensuring its socio-economic role.
Argentina is one of the main dairy exporting countries. An increase in Chinese demand indicates an additional sales volume and the possibility of improved export margins for Argentina. A report highlights a recovery in production, domestic consumption, and exports, following years of crisis in Argentina's dairy industry. The Argentine dairy sector has shown remarkable dynamism in 2025, recording an 11% growth in national production. This increase is excellent news for the entire dairy value chain, from the dairy farmers to the processing industry, reflecting resilience and adaptability in the face of challenges. The upturn positions Argentina with a promising outlook in the regional and international dairy market.
Danone's sales impacted by currency fluctuations involving the Argentine peso. Reported sales saw a 0.4% decline due to a 4.9% negative impact from currency fluctuations, most notably involving the Argentine peso. Argentina is a major exporter of dairy and other agricultural products. The trade agreement between the EU and the US could have significant implications for Argentina, creating new opportunities or competitive challenges in the global food value chain.
Modified: 2025/08/01